Computing super store! Ecom profit margin

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Computing super store! Ecom profit margin

Post by Guest » 11.11.2007, 19:21

Ok i am just starting my own buisness i deicded to go into Computers

I am started to prudce around 1000 ecoms per factory

Can you make enough profit from them to pay for power plants etc.??

Guest

Post by Guest » 11.11.2007, 21:15

OK, now I

Guest

Post by Guest » 11.11.2007, 21:33

Which, E-coms or computers?

Ecoms tend to be more profitable if you don't have your own production chain. For whatever reasons, Silica tends to sell below it's fair value. (Just compare Silica prices to coal, iron, stones, considering that their production values are comparable.) If you buy the cheaper silica and make your own silicon, or else buy someone else's reduced-price silicon, then there's some profit built in for you.

Regardless, ecomponents are an intermediate good - you can't pull it from nothing, and you can't sell it to consumers. As a result you are always somewhat at the mercy of other players. (Buyers can dry up, competitors can come in, or supplies can rise.) That doesn't mean they aren't profitable - sometimes these things are very profitable. Especially if you become a high-quality supplier to people who need them. But it does mean that you can be subject to shifts that you can't control.

Computers are ok. They are late in the production chain, so it's a lot of work to build them from scratch or a certain reliance on a number of others to buy the parts. But you can sell them directly to customers, so you will always have income. I'd rank them above printers but below Televisions and Monitors.

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